business Flashcards
Distinguish between a good and a service
A good is a tangible item that can be touched and owned, while a service is an intangible offering that provides value through activities or benefits.
Goods can be physical products like furniture, whereas services include actions like haircuts or consulting.
Explain the difference between a luxury and essential good
Essential goods are necessary for basic living, while luxury goods are non-essential items that provide comfort or prestige.
Examples: Food (essential) vs. designer handbags (luxury).
What does ‘obsolete’ mean? Name 2 items that are now obsolete
Obsolete means no longer in use or out of date. Examples include floppy disks and VHS tapes.
They are obsolete due to advancements in technology that replaced them.
What is ‘planned obsolescence’?
Planned obsolescence is a strategy where products are designed to have a limited lifespan, encouraging consumers to purchase replacements.
Companies use this idea to increase sales and profit margins.
Sketch a diagram and explain the 4 stages of the business cycle
The four stages of the business cycle are: Expansion, Peak, Contraction, Trough.
Each stage represents different economic conditions and performance.
Describe the generation of wealth and jobs when opening a new business in a community
Opening a new business generates wealth by creating jobs, stimulating local economy, and increasing tax revenue.
It often leads to increased consumer spending and local investment.
List some of the characteristics of an entrepreneur
what should they nbe good at?
- Risk-taking
- Innovation
- Determination
- Leadership skills
- Visionary thinking
Entrepreneurs often possess a unique combination of traits that enable them to succeed.
Describe each of the four types of business ownership
- Sole proprietorship: Owned by one individual
- Partnership: Owned by two or more individuals
- Corporation: A legal entity separate from its owners
- Cooperative: Owned and operated by a group for mutual benefit
Each type has different legal and tax implications.
Give an example of a ‘Crown Corporation’
An example of a Crown Corporation is Canada Post.
Crown Corporations are government-owned entities that provide services to the public.
Outline some of the pros and cons of gentrification
- Pros: Increased property values, improved services, revitalized neighborhoods
- Cons: Displacement of low-income residents, loss of cultural identity, rising living costs
Gentrification can lead to both positive and negative impacts on communities.
Define the terms ‘supply’ and ‘demand’
- Supply: The total amount of a good or service available for purchase
- Demand: The total amount of a good or service that consumers are willing to buy
These concepts are fundamental to understanding market dynamics.
List the factors that affect supply and demand
- Price
- Consumer preferences
- Income levels
- Number of suppliers
- Government policies
Various external and internal factors can influence supply and demand.
Describe and give examples of the 3 major economic systems
- Traditional Economy: Based on customs and traditions (e.g., subsistence farming)
- Command Economy: Controlled by the government (e.g., North Korea)
- Modern Mixed Economy: Combines elements of both (e.g., United States)
Each economic system has its own method of resource allocation.
What is the ‘equilibrium point’?
The equilibrium point is where supply equals demand in the marketplace.
It is the ideal price point where the quantity supplied matches the quantity demanded.
Explain the effect on supply, demand and price when medical researchers discover that consumption of steak reduces the risk of heart failure
Demand for steak increases, leading to higher prices and potentially increased supply as producers respond.
This scenario illustrates the relationship between consumer perception and market dynamics.
Explain the effect on supply, demand and price when new automated equipment is introduced in the production of computer hardware
Supply increases due to more efficient production, which may lower prices if demand remains constant.
Technological advancements often enhance supply capabilities.
Explain the effect on supply, demand and price when there is an increase in population of a small town influencing housing purchases
Demand for housing increases, potentially raising prices and prompting an increase in supply as builders respond.
Population growth typically drives demand in housing markets.
List some of the functions of the Human Resource Manager
- Recruitment and hiring
- Training and development
- Employee relations
- Performance management
- Compensation and benefits
HR managers play a critical role in managing an organization’s workforce.
What are employability skills? Why are they important?
Employability skills are competencies that enhance an individual’s ability to gain and maintain employment. They are important because they increase job prospects and adaptability.
Some people call them ‘transferable skills’ because they can be applied in various job settings.
What’s the difference between hourly wages and salary?
Hourly wages are paid based on hours worked, while salary is a fixed payment regardless of hours worked.
Salaried employees may not receive overtime pay, while hourly employees do.
What are the components of a Balance Sheet?
- Assets
- Liabilities
- Equity
The Balance Sheet provides a snapshot of a company’s financial position at a specific point in time.
What are the components of an Income Statement?
- Revenue
- Expenses
- Net Income
The Income Statement shows a company’s financial performance over a specific period.
What is the fundamental accounting equation?
Assets = Liabilities + Equity
This equation reflects the relationship between a company’s resources and its obligations.
How do you calculate ‘Net Income’?
Net Income = Total Revenue - Total Expenses
This calculation determines a company’s profitability.
